( TUTS) unleashed its Internet protocol TV ambitions on another downtrodden rival Friday, rolling out a deal to acquire
for $10 million in stock.
Tut Systems of Lake Oswego, Ore., said it is acquiring Copper Mountain "primarily to acquire additional product and engineering resources, which will be refocused to address the expanding IPTV market opportunities." Tut will use Copper Mountain's intellectual property and bring some product elements into its "video-centric product portfolio." It said it will hire some Copper Mountain employees from development centers in Palo Alto and San Diego and retain Copper Mountain's San Diego facility.
The definitive agreement comes just a month after Tut unveiled a $24 million buy of
. That stock swap will give Tut access to Cosine's $23 million bank account. Unlike in the Copper Mountain deal, however, Tut indicated that it would largely shut down Cosine's operations.
For its part, Copper Mountain, a Palo Alto, Calif., maker of digital subscriber line, or DSL, networking gear, has already
laid out plans to fire most of its staff in an effort to attract a buyer. The company put itself on the block last August after the cancellation of a large carrier broadband upgrade project and potential delays in decisions from several other large carriers.
On Friday, Tut rose 6 cents to $4, and Copper Mountain added 2 cents to $1.06.